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Books u/s 44AA

Sunali (Learner) (1317 Points)

25 December 2009

U/s 44AA, certain category of assessees are required to maintain books of account as prescribed..

What about the ones who do not fall u/s 44AA, can A.O. demand any sort of books or documents from them so as to ascertain their correct income..!!!..and will the assessee be then liable on not producing the sufficient evidence..!!!!

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MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 25 December 2009

A person not required to maintain books of account u/s 44AA shall still have to maintain such books of account through which A.O. can assess his income. If A.O. feels that the books are not sufficient, he can definitely demand some other books, and if Assessee feels that stand of AO is not correct then it can be a matter of appeal for the assessee depending on facts.

Refer following case for having an idea on how the Sec. 44AA works

https://law.incometaxindia.gov.in/Directtaxlaws/act2005/%5B2001%5D247ITR0083(Ker).htm

Amir (Learner) (4016 Points)
Replied 25 December 2009

Assesses not falling under sec 44AA are not required to maintain books of accounts..in such case AO cannot ask for books of accounts but can definately ask for some documents like bank statements, copy of agreements, etc in order to compute income..

Sunali (Learner) (1317 Points)
Replied 26 December 2009

Agree...!!

Considering an example, in case of 'stocks', which evidence can prove the value of the same as been correctly ascertained by the assessee..??

Bharat Khurana (Student) (153 Points)
Replied 26 December 2009

Even if the person not specified u/s 44AA do not have to maintain the books prescribed u/s 44AA. But in case he has to maintain to accounts which can enable the assessing officer to calculate correct income if does not maintain such accounts then he will be liable for no producing the sufficient evidence and assessment u/s 144 may be there.

NARENDER PAWAR (CA final Student) (337 Points)
Replied 26 December 2009

YES IF ANY PERSON IS NOT SPECIFIED U/S 44AA EVEN IN THAT CASE HE REQUIRED TO MAINTANE BOOKS OF ACCOUNTS FOR THE HELP OF ASSESSING OFFICER OTHERWISE ASSESSING OFFICER MAY DO BEST JUDGEMENT ASSESMENT U/S 144.

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 26 December 2009

bharat khurana and narender pawar are correct in this context.............

Sunali (Learner) (1317 Points)
Replied 28 December 2009

Originally posted by : Sunali
	Agree...!! Considering an example, in case of 'stocks', which evidence can prove the value of the same as been correctly ascertained by the assessee..??